Partnership Investment on a duplex using FHA
I’m currently looking to purchase a $220,00 duplex for 3.5% down with a partner. In year 1 I will be living there and renting out the 5 other bedrooms to friends of mine. After year 1 I plan on moving out and renting out all 6 bedrooms as a college rental.
My partner will be in charge of the hands on property management as I will be living a few hours away. If I’m on the loan and my partner is not, but he will be doing the property management, how can we structure an agreement that is fair for both parties and keeps both sides protected?
Any feedback would be much appreciated!!
Most Popular Reply
@Zach Gulbransen There are a couple things to consider... the down payment/equity requirements vary depending on whether or not you live there. I would caution you that when you go to refinance to disclose your intent accurately because it could effect your future purchase. I will add a link to Fannie Mae Guidelines, but here is a quick overview. FHA is only owner occupant financing and it's 3.5% down. Fannie Mae (conv.) is 15% equity on a 2-unit (owner occupied) and 25% equity required to 3-4 units. If you are refinancing it as an investment property it would be 25% equity for 2-4 units. https://singlefamily.fanniemae...